Acquisition
28 Octobre 2003 - 4:17PM
UK Regulatory
RNS Number:3997R
Watermark Group PLC
28 October 2003
For immediate release: 28 October 2003
WATERMARK GROUP PLC FURTHER DEVELOPS TOTAL CABIN
MANAGEMENT SERVICE
Watermark Group plc ("Watermark"), the provider of marketing support services to
the international travel industry, today announces two developments in its
stated intention to provide a total cabin management service to the airline
industry.
Aero TV
Watermark has today entered into Heads of Terms with DCN Limited, an unlisted
public Australian company, to form a joint company ("the Company") for the
marketing of its digital content distribution system ("the System") to the
travel industry for on-board entertainment under the Aero TV brand.
Under this agreement, Watermark will have the worldwide marketing rights to the
System (with the exception of Australian based airlines) with Watermark
receiving 10% of the net sales revenues arising.
It is proposed that Watermark will make an initial nominal subscription for one
sixth of the shares in the Company. It is then intended that there is to be an
application to a public market, following which Watermark's interest will be no
less than 10%. An additional 5% will be received by Watermark from DCN, upon
the achievement of certain profitability and marketing targets. Apart from the
initial nominal subscription, there will be no further consideration payable by
Watermark in these arrangements.
UIS
Watermark also announces an agreement signed today for the acquisition of Update
International Services Limited ("UIS"), a company providing a variety of
inflight products and logistic services to the airline industry. The
acquisition, effective from 1 September 2003, will be for a nominal
consideration of #1, and consolidates the logistics operations and the U.K. and
European client base acquired with the acquisition of Update International
Limited in Hong Kong, which was announced on 26 July 2002.
Going forward, Watermark anticipates that the acquisition of UIS will constitute
a positive contribution to the Watermark Group in terms of both turnover and
profit before tax as well as being a source of introduction to further potential
areas of development for the Group.
UIS, in respect of the audited accounts for the year ending 31 March 2003, made
a pre and post tax loss of #0.35 million on a turnover of #2.34 million, and had
net liabilities of #0.77 million.
For further information please contact:
John Caulcutt, Chief Executive Rosie Brown
Crispin Quail, Finance Director John West
Watermark Group plc Tavistock Communications
Tel: 01489 897800 Tel: 020 7920 3150
e-mail: info@watermarkplc.co.uk e-mail: rbrown@tavisock.co.uk
Notes to Editors: DCN Limited was formerly known as Data-cast.Net Limited.
This information is provided by RNS
The company news service from the London Stock Exchange
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